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On a reported basis for fiscal 2017, the Company generated revenues of over $1.3 billion, an operating loss of $60.4 million and adjusted operating income (“AOI”) of $97.6 million.(1)(2)(3) Please note that fiscal 2017 revenues include $30.5 million in non-recurring NHL and NBA distributions, while fiscal 2017 operating loss and adjusted operating income results also include the impact of these league distributions, as well as $42.3 million in net provisions for team personnel transactions and a $33.6 million non-cash write-off.

On a reported basis for the fiscal 2017 fourth quarter, the Company generated revenues of $305.6 million, an operating loss of $92.5 million and adjusted operating loss of $43.6 million. Please note that fiscal 2017 fourth quarter revenues include $15.0 million in non-recurring NHL and NBA distributions, while fiscal 2017 fourth quarter operating loss and adjusted operating loss results also include the impact of these league distributions, as well as $35.2 million in net provisions for team personnel transactions and the non-cash write-off discussed above.

President and CEO David O’Connor said, “Our efforts to more efficiently and effectively harness the strength of our sports and entertainment assets and brands led to numerous operational successes in fiscal 2017. Notable highlights include an increase in the utilization of our venues and growth across most of the Company’s key revenue lines, which drove strong underlying financial results for the year. We also took the successful first steps in expanding our portfolio of live offerings with our investments in TAO Group and Boston Calling Events, two complementary businesses with meaningful growth potential. Looking ahead, we remain confident that as a pure-play provider of live sports and entertainment experiences, we are uniquely positioned to generate attractive long-term growth and asset value creation for our shareholders."

Results from OperationsSegment results for the quarters ended June 30, 2017 and 2016 are as follows:

Revenues

OperatingIncome (Loss)

Adjusted OperatingIncome (Loss)

$ millions

F’Q42017

F’Q42016

%Change

F’Q42017

F’Q42016

%Change

F’Q42017

F’Q42016

%Change

MSG Entertainment

$

125.9

$

84.0

50%

$

(46.1

)

$

(17.9

)

(158)%

$

(39.2

)

$

(13.2

)

(197)%

MSG Sports

179.6

133.5

35%

9.8

12.8

(23)%

14.5

18.4

(21)%

Corporate and Other

—

0.2

NM

(44.2

)

(41.0

)

(8)%

(18.9

)

(19.0

)

—%

Purchase Accounting Adjustments

—

—

NM

(11.9

)

—

NM

—

—

NM

Total Company

$

305.6

$

217.8

40%

$

(92.5

)

$

(46.2

)

(100)%

$

(43.6

)

$

(13.8

)

(216)%

Note: Does not foot due to rounding

(1)

Adjusted operating income (loss) now excludes the impact of purchase accounting adjustments related to business acquisitions. See page 5 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.

(2)

During the fiscal 2017 first quarter, the Company refined its approach to allocating its corporate, venue operating and other shared expenses. Prior period results are reflected as originally reported and have not been restated. Had this approach been used in fiscal 2016, MSG Sports operating income and MSG Entertainment operating loss for the fiscal 2016 fourth quarter would have increased by approximately $1.7 million and $0.1 million, respectively, while Other operating loss would have increased by $1.6 million. Further, MSG Sports adjusted operating income and MSG Entertainment adjusted operating loss for the fiscal 2016 fourth quarter would have improved by approximately $1.6 million and $0.5 million, respectively, while Other adjusted operating loss would have increased by $2.2 million.

(3)

Fiscal 2017 fourth quarter financial results include TAO Group's operating results for the period from February 1, 2017 to March 26, 2017. The Company records TAO Group's operating results in its consolidated statements of operations on a three-month lag basis.

MSG EntertainmentFor the fiscal 2017 fourth quarter as compared to the prior year period, MSG Entertainment revenues of $125.9 million increased 50%. The increase was primarily due to the inclusion of operating results for TAO Group and Boston Calling Events and, to a lesser extent, higher venue-related sponsorship and signage revenues. This was partially offset by lower event-related revenues at the Company's venues and lower revenues for the New York Spectacular Starring the Radio City Rockettesproduction. The decrease in event-related revenues was primarily due to lower event-related revenues at The Garden, the Beacon Theatre and The Chicago Theatre, partially offset by higher event-related revenues at Radio City Music Hall. The decrease in revenues for the New York Spectacular Starring the Radio City Rockettesproduction was a result of no performances being held in the fiscal 2017 fourth quarter as compared to 21 shows in the prior year period.

Fiscal 2017 fourth quarter operating loss of $46.1 million increased by $28.3 million and adjusted operating loss of $39.2 million increased by $26.0 million. The increase in operating loss and adjusted operating loss primarily reflects higher direct operating expenses and, to a lesser extent, selling, general and administrative expenses, partially offset by the increase in revenues.

The increase in direct operating expenses primarily reflects a $33.6 million write-off of the remaining deferred production costs for the New York Spectacular Starring the Radio City Rockettesproduction and the inclusion of operating results for TAO Group and Boston Calling Events. This was partially offset by lower operating costs for the New York Spectacular Starring the Radio City Rockettesproduction (a result of no performances being held in the fiscal 2017 fourth quarter as compared to 21 shows in the prior year period) and, to a lesser extent, lower event-related expenses at the Company's venues. The increase in selling, general and administrative expenses was primarily due to the inclusion of TAO Group operating results and, to a lesser extent, higher corporate general and administrative costs.

MSG SportsFor the fiscal 2017 fourth quarter as compared to the prior year period, MSG Sports revenues of $179.6 million increased 35%. The increase in revenues was due to higher league distributions and playoff-related revenues and, to a lesser extent, higher professional sports teams' sponsorship and signage revenues and media rights fees from MSG Networks Inc., partially offset by lower event-related revenues from other live sporting events and other net decreases. The increase in league distributions reflects $15 million in non-recurring NHL and NBA distributions and, to a lesser extent, the impact of the NBA’s new national media rights agreements. The increase in playoff-related revenues was primarily due to additional home playoff games as compared to the prior year quarter.

Fiscal 2017 fourth quarter operating income decreased by $3.0 million to $9.8 million and adjusted operating income decreased by $3.9 million to $14.5 million. The decrease in operating income and adjusted operating income was primarily due to an increase in direct operating expenses and selling, general and administrative expenses, partially offset by the increase in revenues.

The increase in direct operating expenses was primarily due to an increase in net provisions for certain team personnel transactions, higher playoff-related expenses and, to a lesser extent, higher team compensation costs. The increase in selling, general and administrative expenses was primarily due to the impact of severance-related costs associated with the separation agreement with a team executive.

Corporate and OtherFor the fiscal 2017 fourth quarter, Corporate and Other operating loss of $44.2 million increased by $3.1 million, primarily due to higher employee compensation and related benefits (including share-based compensation expense) and other net increases, partially offset by the absence of a $6.9 million reorganization charge recorded in the prior year fourth quarter. Fiscal 2017 fourth quarter adjusted operating loss of $18.9 million improved by $0.1 million, primarily due to the absence of the reorganization charge recorded in the prior year fourth quarter, offset by an increase in employee compensation and related benefits (excluding share-based compensation expense) and other net increases.

Purchase Accounting AdjustmentsFor the fiscal 2017 fourth quarter, the operating loss related to purchase accounting adjustments was $11.9 million, the majority of which reflects expense related to the step-up in value of TAO Group’s inventory and leases.

About The Madison Square Garden CompanyThe Madison Square Garden Company (MSG) is a world leader in live sports and entertainment experiences. The company presents or hosts a broad array of premier events in its diverse collection of iconic venues: New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, CA; The Chicago Theatre; and the Wang Theatre in Boston. Other MSG properties include legendary sports franchises: the New York Knicks (NBA), the New York Rangers (NHL) and the New York Liberty (WNBA); two development league teams -- the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL); and one of the leading North American esports organizations, Counter Logic Gaming. In addition, the Company features popular original entertainment productions -- the Christmas Spectacular and New York Spectacular - both starring the Radio City Rockettes, and through Boston Calling Events, produces outdoor festivals, including New England’s preeminent Boston Calling Music Festival. Also under the MSG umbrella is TAO Group, a world-class hospitality group with globally-recognized entertainment dining and nightlife brands: Tao, Marquee, Lavo, Avenue, The Stanton Social, Beauty & Essex and Vandal. More information is available at www.themadisonsquaregardencompany.com.

Non-GAAP Financial MeasuresWe define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before 1) depreciation, amortization and impairments of property and equipment and intangible assets, 2) share-based compensation expense or benefit, 3) restructuring charges or credits, 4) gains or losses on sales or dispositions of businesses and 5) the impact of purchase accounting adjustments related to business acquisitions. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to the settlement of an obligation that is not expected to be made in cash.

We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) measures as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of adjusted operating income (loss) to operating income (loss), please see page 4 of this release.

Forward-Looking StatementsThis press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

Conference Call Information:The conference call will be Webcast live today at 10:00 a.m. ET at www.themadisonsquaregardencompany.comConference call dial-in number is 877-347-9170 / Conference ID Number 57274623Conference call replay number is 855-859-2056 / Conference ID Number 57274623 until August 24, 2017